>> from the heart of where

innovation, money and power collide in silicon valley and beyond, this is "bloomberg technology" with emily chang. emily: i'm emily chang in san francisco. coming up, apple announces are rare sales promotion for the iphone in china. is the discount a bad sign? on the latest episode of keeping up with tiktok, meta-introduces a feature to help people make money from videos set to music. what it means for facebook and instagram. tech workers may be leaving a hole in san francisco. can the city recover? does silicon valley need to reinvent itself as attack hub?

-- as a tech hub? tech dropping lower out of a brutal week for earnings. at low -- ed ludlow has the moves from walmart. >> earnings season hitting us in the face. the nasdaq 100 down 0.5% for a second day of declines following a negative into the week. the philadelphia semiconductor index lower 0.7 percent. even with the administration giving talks with business leaders about bringing the production of semiconductors back into the u.s. on the progress they hope to make with chips, looking for optimism, 1.4% on the nasdaq. a local media report out of china says beijing regulators are looking at scenarios and data driven approaches and ways to avoid the delisting of u.s. listed shares of chinese tech companies. that sent u.s. shares of chinese

tech companies hire. -- higher. i hope you are ready for this weekend. a lot coming out. a look at the calendar, this is what we are bracing for. monday a reprieve, but tuesday, wednesday, thursday, these are the biggest names in technology coming at us with earnings. we are focused with the fed meeting this week. after hours, big names reporting , a semiconductor company higher in the post market sector but down one point 6%. a strong outlook for the third quarter, strong demand across sectors and the bombshell drops, we will take a look at walmart down significantly after hours, cutting its profit outlook for the second half of the year. they are citing higher inflation and fuel costs, the consumers will stay away from general merchandise and it will have to

discount to shift inventories. down 9% after hours and this is a big story. emily: expecting amazon as well. for more on walmart, i want to bring in john edwards. what does it take -- what is your take on these results? >> to some extent it is a surprise given the walmart had expressed confidence previously in how it would handle bringing its inventories down. it was a contrast with target, which had moved aggressively to cut prices more quickly, to really/those inventories -- slash those inventories. walmart said it would ease down but what we are seeing is consumers are even more hit by the high inflation than they had expected at walmart.

they are having to move more aggressively than they hoped and cut prices deeper than they had hoped. that is cutting into margins. emily: walmart's ceo says the increasing levels of food spend. we are seeing more pressure on general murder nice -- merchandise. will this potentially have a big impact on markets across the board? >> i think people will be concerned by this. walmart had been out there speaking pretty brashly about how it would be able to handle this situation without taking any drastic steps. but what they are seeing is the

shift in consumer behavior, which is part of what led to the inventory buildup in the first place, people started going out more and shifting away from the spending on house and home that they had been doing in the past, now a further shift is happening as people realize food prices and fuel prices are really hurting them. they are shifting away from big-ticket ticket items, continuing to spend on food and things they have to buy. the margins are lower on this. emily: the pressure is on. john, i appreciate use -- you sharing extra context. john edwards, who leads our consumer tech team at bloomberg. walmart's results, not going to help quell anxiety among tech investors as we await more earnings. expecting results from apple,

alphabet, amazon and meta, which could indicate how large a recession looms. the market turmoil fueled the idea -- sealed the idea window almost shut. 2022 will be a quiet year for public offerings. phil hazlett is founder and chief strategy officer. this will martinuzzi is not going to help. the ipo window will see -- will seal more tightly shut. >> that is right. this is another month of more hits to the ipo market and prospects. walmart may be a different company than technology companies where it is selling milk and staples but it will feed through to other companies. the real eye will be on tech stocks as they report later in the week. i'm sure a lot of bankers and companies hoping to tap into the markets are weight -- waiting with bated breath. emily: is the ipo window shut across the board for all

companies? does this affect companies focused on e-commerce or is this something happening more broadly? >> i think that is right. we define so many companies as being in technology. any company related to consumer spending, coming up with solutions for aviation or groceries, are going to be severely impacted. a lot of companies are selling direct to enterprises, direct -- traditional software companies. they will keep a close eye on bigger tech names as they report. it is a perfect storm where we have continuing uncertainty about inflation, really tough earnings updates and guidance given from companies like walmart and snap last week and a historically slow part of the year for ipo's, so that comes together and you probably aren't seeing anything go out the door until q4. emily: ipo's, how far away do

you think they are? >> i think you have companies preparing everything if the economy turns around more quickly. you have financed teams at pre-ipo companies, we speak to them and they are gearing up to be ready when the window becomes available. maybe there is an opportunity for the strongest names, but other than that i tend to agree it probably won't and -- won't be until 2023. emily: the closed window is creating tension between employers and employees. employees are working at startups and thought maybe they would get an exit. that is not happening. what are you seeing below the surface? >> we have a good lens into the feelings and sentiment of employees that hold shares. a lot of conversations the employee agrees -- the employees had, we are raising money and will go public soon and will get liquidity and that is not the

case. it is exacerbated by the recent news coming up from some companies where insiders, executives or founders, took a lot of chips off the table in 2021 but didn't make that available to employees. to me, that is serving as fuel to the fire for what i imagine will be probably an uprising is a bit extreme but a movement from employees to ask employers for more opportunities for liquidity. emily: there is a company, data robot, the ceo reportedly resigned in part due to share sales that executives were allowed to do that lower-level employees were not allowed to do. what are the ripple effects that you see happening? do you think employees will start walking out, looking for other jobs or are there not a lot of choices right now because the market is so tight? you have tech hiring freezes and layoffs happening across-the-board.

>> if you ask recruiters at a venture backed company, it is easier -- it is not easier to hire engineers. the job market for those folks is hot so i think there will be voting with their feet. the data robot situation was bad in the sense that these executives joined the company two years ago. at our company we see founders who put their blood, sweat and tears and built the business for the last 10 years and i think that is well received by employees. when you see senior executives who haven't been around long, that frustrates people. founders and ceos have a choice. you can be reactive and help employees stick around or you can be proactive and talk about liquidity, because it is a valve companies can use to retain their best employees without having to dig into more money out of the balance sheets that are getting hurt in the current economy. i think it is a win-win for everyone. emily: it is good to hear about

win-wins in a situation where there is a lot of lose-losing happening. equities and securities -- equityzen securities founder, thank you. iphones for sale but only in china. we explain why, next. this is bloomberg. ♪

emily: in an unusual move, apple is offering a discount for a slew of products but only in china. iphones, apple watches and airpods will be on sale in china for four days as the company prepares to roll out the next generation of apple devices area bit it -- devices.

china is struggling under covid lockdowns. mark covered all things apple. this is fairly rare? >> incredibly rare. in the u.s. appellees gearing up for the tax holiday. a handful of states will be able to buy apple products without tax. singles' day in china is a popular shopping day. cyber monday and black friday in the u.s., education discounts, but a one-off rare shopping holiday for a few days in china, this is not something i have ever seen before. here is something to point out. on thursday, apple earnings come out. friday the sale kicks off. there have been economic issues, sales slowdowns, economic concerns across china over the last several months. perhaps this might be timed in response to the day after earnings because maybe the china results, this is speculation but

aren't going to be as hot as some expected. this is an easy way to prepare investors and analysts to show we have a quick solution and we think a sale, nearly $100 in savings on some items, those four days could boost sales immediately into the fourth quarter. emily: we are looking ahead to earnings in the next few days. we will learn more there. you're saying this is potentially a bad sign? >> potentially a bad sign. if things are perfect in terms of sales in china, i don't know if apple would do a random sale like this. their sales are usually tied to a specific holiday or event. there are none going on in china this week that i could think of. there is a reason they want to drum up excitement and sales over these products with these discounts. i don't see this as a reason to clear inventory. i don't think that's necessary. the new iphones won't go on sale for about three months so they

still need a quarter of a year worth of inventory. many products going on sale for this special are going to remain on sale even after the iphone 14 and other new products come out. the apple watches they are handling with this discount, the iphone 13, the third-generation airpods, though ours are going to be on sale into next year annie -- anyways. they want to draw up sales somehow with this. emily: interesting. we will be watching your coverage of earnings later this week. we will watch to see how this promotion rolls out. mark, thank you. coming up, tiktok like features added to meta platforms. is it working? this is bloomberg. ♪

emily: the latest episode of keeping up with tiktok. meta is introducing music revenue sharing on facebook which helps creators make money from videos that use licensed music and might help facebook compete with tiktok. or will it? facebook changed the timeline algorithm to look more like tiktok. the head of communication at instagram covers social media for us. i read that it ties into kylie jenner who just posted on instagram saying stop making instagram look like tiktok. >> i thought you did that on purpose. kylie jenner, huge on instagram. stop trying to make instagram look like tiktok, we want to see our friends and family on this app. a few years ago i believe she

tweeted about snap and the redesign, and it sent the stock plummeting. she has good timing. facebook's earnings are in two days so she is voicing this early. emily: these efforts by meta to make facebook and instagram like tiktok, is this the right direction? should they differentiate instagram and facebook from tiktok? >> i would say tiktok is the best place for views on the worst place to build a sustained reoccurring audience. instagram's identity for so long was these -- the place for building a dedicated audience. so if they go all in for a tiktok for you page, feed for you is what we call the tiktok feed, that devalues it. this is a departure for them identity-wise. i'm curious to see how that plays out. emily: on that note, should

instagram lean into more things that make instagram great rather than just copy tiktok? >> on one hand that is a way to keep your place in this world. if everyone is rushing towards this thing. but they are giving that up. on the other hand they are seeing behind the scenes, things that motivate this. if you are instagram and you see people maybe leave or spend more time somewhere else, the reality is facebook is chasing that attention. that is what is going to happen. may be long-term, keeping that foothold with friends and family would be a smarter play. emily: you worked at instagram for many years. is that happening internally? are they watching tiktok and thinking about how to keep up? >> i can't speak to what is happening internally. it might be like the stories launch, which i was there for.

there was a lot of dialogue, people thinking it wouldn't be successful. there was a huge market that the format was perfect for but weren't using snapchat. we think of tiktok as -- there is a market for people who love the format and love consuming content in that format. there is an opportunity there of course. emily: what is the value proposition to creators? if you are a creator, where do you decide to invest your time given the options right now? >> it depends on your goal and what type of content you want to create. for younger people, i do believe in adapting to what young people want. mobile video tools, good mobile video editing tools, tiktok is underrated for how good and easy the mobile video editing tools are. every platform has upped their game and that is good, giving

young people the tools they want and are already using to create -- communicate across more platforms. competition is good. this might be an unpopular opinion but it is good for tiktok to have competition. emily: there is competition for attention and for creators. talk to us about how that competition plays out. art of what made tiktok successful is the music, which is what the changes at meta are geared towards. >> that drives culture. these are the songs that people want to see and pair with their video. this comes down to business. if you are a creator, where can you not only get the most views but where can you monetize those views? that is why youtube has historically been a great place for creators, better than facebook for video because it is easier to make money. we saw vine, which was tiktok before tiktok.

creators went to other places. i think it will come down to which platform can give people a chance to make a living. emily: there is a graveyard of these platforms. i wonder what you make of kylie jenner's comments. snapchat has never been the same since what kylie jenner said. what do you think about the idea that at least one celebrity power user doesn't want instagram to look more like tiktok? maybe wants instagram to be instagram? >> anybody whose business, and hers is on instagram, is predicated on having followers to be key, will be resistant to this. and resistant to change in general. this seems like it is catering to an audience that prefers a different format. we are talking about music

rights and sound, something that is an underrated thing about tiktok. music.ly was underrated, tiktok before tiktok. the first foundational communities on the platform or dancers. it is no surprise that that was the case, the biggest stars came out of that. video came -- became important because of music as a feature. that has been a defining difference between tiktok and other platforms. it will be interesting to see if the music rights platform will be expanded and close the gap a little. emily: what has facebook said in response to the accusations that it is copying rather than developing its own -- >> it is not shy. i spoke to them when they did the newsfeed changes last week and i sent, people are going to

identify that you are copying tiktok and they were like, these are good ideas. same things they said when stories came out, this is a good idea. emily: maybe it is not who can do it but who can do it best. kurt wagner, liz perle, great to have your perspective. thanks for joining us. coming up, getting the pediatrician on the line in 15 minutes. and you can text them. that is with -- what a help start up is trying to do. more on how, next. this is bloomberg. ♪

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emily: welcome back to bloomberg technology. tesla shares dropped after the quarterly regulatory filing details updated capital spending plans. a new subpoena and more on the bitcoin investments. who has more? ed ludlow with the latest. what do we know? >> you get the details of what was not discussed. tesla down 1.4%, that snapped a hot run. if you look at the last nine days it rose for eight straight days, the best run since march and suddenly dropped off to reflect the session on monday. there was a lot of information in the session. capex will be between six billion dollars-$8 billion in the next two years, a revision upwards. elon musk called tesla factories money furnaces burning money to

ramp up production. then you get the disclosures, the subpoena relating to the 2018 deal between elon musk and the sec -- and the fcc. there is the impairment on bitcoin. bitcoin was one of the mainstays of tesla's balance sheets but it has had a rough start to the year. tesla registers $175 million impairment loss but they sold bitcoin to preserve cash on the balance sheet because of the shanghai shutdowns. emily: elon musk in the headlines again, according to the wall street journal he had an affair with sergey brin's wife. sergey brin the cofounder of google. the journal reporting brin filed

for divorce earlier this year. elon musk denies this. what do we know? ed: the wall street journal reported the affair took place december of last year and the relationship with sergey brin and musk rope down. they cited anonymous sources. musk tweeted in response to somebody who tweeted the article, calling it inaccurate, for want of a better expression. i won't use his term. he tweeted later in the day saying it was in response to a photo tweeted of elon musk and sergey brin and musk claimed they were at a party together 24 hours previous. not only did he deny the affair, but he denied the idea that they had fallen out, saying they had partied together this past weekend. another elon musk story that has little to do with his companies. emily: one we will continue to

follow. thank you. i want to turn to the booming digital health landscape with summer health, a telehealth start up. the idea seems to be resonating with investors. the startup raised seed led by sequoia and lux capital. the ceo and cofounder of summer health joins us. talk about the driving premise of summer health. >> thanks for having me. the idea behind summer health is simple. we believe all americans should have a phone number they can text and get an answer, staffed by a doctor, within 15 minutes for any of your medical needs. this started out of my own needs as a mother. we are excited to launch summer health today. emily: you are focusing on pediatric care. why is that?

the idea that i could reach my pediatrician in minutes is totally novel and amazing but also seems like a moonshot. >> sounds like you as a mother may have experienced this. we are starting at pediatric for many reasons. two of the reasons are that parents are thirsty to get more medical attention for their children. there is no shortage of parenting questions that come up around health and wellness that parents wish they could ask a pediatrician but because pediatricians offices tend to be overworked and sometimes understaffed, they have nowhere to turn. the second reason is we want to get more access and resources to pediatricians who want to work more. we have learned through starting summer health that one in five medical professionals are planning to leave the industry in the next two years, according to the american medical association. anecdotally in pediatrics it is

worse. pediatricians are looking for alternate ways to practice medicine. we believe summer health is a great way for them to do that. emily: why are providers leaving and that it is worse among pediatricians? >> covid was tough for everyone, most notably physicians. physicians have been overworked, understaffed, put through the ringer because of covid. they haven't necessarily benefited from the ability to work from home the way a lot of other professionals have been able to do. many of them are turning to professions that would allow them to work from home, and summer health, you don't necessarily need to be face-to-face with the doctor. your provider can be at her child's soccer game. with pediatrics, pediatricians tend to be women, who have been affected by covid, and lack of childcare resources. 25% are part-time so looking to

fill the rest of their time with other pediatric work. we believe summer health is a venue for them to do so. emily: annie -- amazon acquired one medical last week. there is a lot going on in the telehealth profession. what do you make of the move? >> we have been following the news closely and we believe it is a boon to the telehealth industry when a large player like amazon comes into the space. it is legitimizing for the telehealth industry. we view it as a positive for patients and for the industry as a whole. emily: there are lots of patients who are potentially concerned about amazon owning this company, concerns about how our data for example is going to be used. how can we be sure this is definitely moving the industry in the right direction? >> we think about this a lot.

there is such a thirst for more medical care. our health system today is mostly reactive and mostly done in person. it doesn't necessarily servicing the broader needs of the patient. what we learned through covid is that 88% of americans have access to some form of telehealth in the past two years and 77% of clinicians expressed telemedicine can drive better outcomes for care. we know the industry is ripe for this kind of modality. i'm fairly certain amazon will abide by regulations around sharing of information, but broadly speaking when we see large players coming into the space, i wouldn't be surprised if google and apple and other companies start to play in this category. we see a net positive for patients who can access doctors faster. emily: ceo and cofounder of summer health, very interesting.

we will continue to follow that. google confirmed it fired a software engineer who worked on the ai team over his public contention he had conversations with a bot that had become senti and. he argued computers have feelings. google says his comments were unfounded and he shared confidential company information to third parties. he predicted his own termination in an interview with me last month. >> i don't think we need to spend all of our time figuring out whether i'm right about it being a person. we need to figure out why google doesn't care about ai ethics in any meaningful way. why does it keep firing ai people each time we bring up issues? emily: you can watch the interview at bloomberg.com and on youtube. the crypto winter, taking hold after a massive selloff. the future of crypto securities,

next. this is bloomberg. ♪

emily: time for our crypto report with bitcoin sinking into the $19,000-20 $2000 range. has bitcoin found its floor? our crypto contributor has been investigating that question. what are we thinking? >> it is interesting, last week bitcoin slipped past $23,000 and

has come back down. it has several days of muted price pressure and has catalysts that could make the right ahead rocky. the $19,000-$22,000 range has everyone warren -- wondering if the leverage is out of the system. we have had pressure on pricing but over the last seven days, you are seeing bitcoin trading higher than seven days ago. i want to show you ethereum, a bigger decline than in bitcoin over the last 24 hours but over the last seven days, there is some excitement about in -- ethereum land bitcoin. for ethereum there is the merge date on the table. does the excitement push prices back up in the face of uncertainties? is the leverage out of the system? emily: we will explore this more. our next guest has his own read on this, the chief experience officer at ledger, a platform

that provides hardware wallets for securing crypto assets. we will get a crypto security but i want to get your read on the winter, as it were. do you think bitcoin has hit the floor? is it only up from here? is what we saw over the past couple weeks ahead fake? >> i don't think any of us know what happens in the short term. for us it is a long-term bet on digital assets overall. from our perspective there is any -- a new human invention that will have a massive effect on humanity. what is the arc of that? what are the ups and downs? it is difficult to say that for me, having lived through the dot-com bubble, this is like asking what was going on at that moment in time when the market crashed, but the internet was inevitably and unquestionably going to have a massive effect on humanity? emily: what about everything

else? what about the nft landscape, what about web three overall? how are you preparing for what the industry may look like coming out of the crypto winter? >> we launched ledger market 5.5 hours ago and we have done $3 million in business in the last 5.5 hours. i think we are going through this once in humanity digitization of everything. if you fast-forward to a 20 years from now, your passport is a digital document in your digital wallet in the way you prove you are you who you say you are, you prove you are the owner of the digital wallet. it is difficult to pick winners and losers like in the late 1990's or early 2000's, it was difficult to pick winners or losers but you could bet on the internet long-term. you can bet on digital assets security as things that are

long-term and if you have a portfolio that is focused on those things, it is likely to return over time. emily: you talk about self custody and storing your own crypto. what has this moment in the industry taught people about ownership of crypto assets themselves and the difficulties in doing so, especially as many exchanges show you they own the crypto you think you own? >> great question. unfortunately people equate the bankruptcy of celsius and voyager with crypto overall, which is like equating bernie made off -- bernie madoff with the stock industry overall. it doesn't make sense. unfortunately it has taught people what people in the crypto industry have known for a long time, not your keys, not your coins. one of the great inventions you can actually hold onto your

assets so run on the bank is impossible. if you just go into a system where you give somebody else your money and ask them to manage it for you, all kinds of things can happen. >> you are a formal -- former apple music executive. i'm curious about the relationship between music and crypto. are there any lessons you learned in your former life that you are applying to crypto security? >> definitely. i left college in 1995 to go on tour with the beastie boys. i worked at lvmh for five years. my background is computer science but if i learned nothing about marketing with those geniuses, i would be pretty stupid. how do we take a brand like this and bring it into culture? that is one thing we are trying to do. with respect to music

specifically, music is 99.9% digital. i think the internet brought us this revolution of information and what we are going through now is a revolution of value. music is on some level information. it has been set free and digitized. but to the degree, as you can see i'm a record collector. those are collectibles and those will have different levels of utility. what happens over the next year is, you get applications that resemble myspace. myspace was early, it was messy, old people didn't understand it at first. people will use it as a way to showcase their digital belongings and those digital belongings will give them access to other parts of the world. if i buy a louis vuitton handbag , it gives me a token and i can get into the louis vuitton world and i'm not on the street in line anymore. this combination of digital and physical will bring this to us, digital and physical ownership. emily: i'm curious about your

thoughts on the evolution of the music industry. we covered facebook offering new tools to creators who want to make licensed videos with licensed music in them. tiktok has totally reinvented this category of social media videos set to musical tracks. what do you see as the evolution of music combined with social media? >> i think what i have always said is, when i was at lvmh it was the same as the music business in that we sold culture as a prerequisite to selling product. when people buy music come even when they were buying compact discs, you were buying, when a teenager bought a cd, they were bought -- they were buying what eminem means, like when you buy a dior handbag.

we have this revolution of information with the internet and information is free. someone in a small town in indiana has the same access to culture that someone in new york or london or paris or tokyo does. that is what is revolutionized. largely it has moved us away from these mass media sources and into tribes and cliques. we feel that coming out of the pandemic, but that affects everything, including music. music is not just sonic, it is a way of belonging. emily: that is kind of beautiful. ian rogers, appreciate you taking a swing at that with us. thank you. coming up, san francisco is becoming a ghost town, some say. the real-life impact of the

flight -- flight from silicon valley, next. this is bloomberg. ♪

emily: the market downturn hit the u.s. economy hard but is hit san francisco's economy particularly hard with local giants like apple and google planning to slow hiring and more tech workers from home permanently. the tech sector that supercharged the economy is leaving a vacuum and silicon valley. you have a big piece out on this now. why does it seem like san francisco has been hit harder than any u.s. -- other u.s. cities? >> san francisco has been hit really hard because so much of our economy revolves around tech. unlike new york, which is financed dominated, tech

companies here have embraced remote work policies so that means fewer employees going to restaurants, fewer employees shopping and supporting the economy that san francisco depends on. meanwhile you have and lack of international tourists, and tourism hasn't rebounded. that means the recovery in san francisco is trailing other major u.s. cities. emily: you are seeing more companies offering more remote work options. i wonder if we can't depend on tech to revive the city. what can the city do to revive itself? >> the city is making its biggest push yet to revitalize downtown and give office workers a reason to go downtown. they are going to emphasize, let's take this vacant

commercial space and have festivals and markets so employees think, maybe i will go into the office because i can do something cool after work. the hope is to get workers going into the office three days per week. that would be a huge help to the local economy. emily: is there any hope that tech will come to the rescue? >> i think they are working on making the city seem safe and secure and that is what they had these so-called ambassadors around transit stations and major tourist sites to make it seem like you can come to the office, it will be fun. if they can get tech workers and other people, mostly tech workers, to come in, that would be a huge benefit to the city. emily: it wasn't long ago i saw a raccoon walking down the sidewalk in the middle of san francisco at 11:00 a.m.

there was a raccoon on the sidewalk. that is what this has come to. great piece by you today. catch it at bloomberg.com on how san francisco is dealing with this. thank you for joining us. that does it for this edition of "bloomberg technology." this week we are all over earnings. join us tomorrow when we break down alphabet results along with microsoft. don't miss that. check out our podcast as always wherever you get your podcasts. i'm emily chang in beautiful san francisco. this is bloomberg. ♪